Bombay High Court Allows Land Acquisition Compensation Revision Applications for Enhanced Compensation — Interest Under Section 28 of Land Acquisition Act, 1894 Held Payable on Solatium and Additional Amount.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The case involves multiple Civil Revision Applications filed by land owners whose lands were acquired by the State of Maharashtra for the Swarna Project in Latur. The Special Land Acquisition Officer awarded compensation, but the applicants sought enhancement. The Reference Court under the Land Acquisition Act, 1894 enhanced the compensation but denied interest on solatium and additional amount. The applicants challenged this denial before the High Court. The High Court, relying on the Supreme Court's decision in Sunder v. Union of India, held that interest under Section 28 of the Act is payable on the entire enhanced compensation, including solatium and additional amount. The court allowed the revision applications, setting aside the impugned orders to the extent they denied interest, and directed the respondents to pay interest on solatium and additional amount from the date of possession till payment.

Headnote

A) Land Acquisition - Compensation - Interest on Solatium and Additional Amount - Sections 28, 23(1A), 23(2), 34 of Land Acquisition Act, 1894 - The applicants sought enhanced compensation for land acquisition, including interest on solatium and additional amount - The Reference Court granted enhanced compensation but denied interest on solatium and additional amount - The High Court held that interest under Section 28 is payable on the entire enhanced compensation including solatium and additional amount, following the Supreme Court's decision in Sunder v. Union of India - Held that the Reference Court's order denying such interest was erroneous and liable to be set aside (Paras 1-10).

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Issue of Consideration

Whether the applicants are entitled to interest on solatium and additional amount under Section 28 of the Land Acquisition Act, 1894, and whether the Reference Court erred in denying such interest.

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Final Decision

The High Court allowed the Civil Revision Applications, set aside the impugned orders to the extent they denied interest on solatium and additional amount, and directed the respondents to pay interest on solatium and additional amount from the date of possession till payment.

Law Points

  • Land Acquisition Act
  • 1894
  • Section 28
  • Section 23(1A)
  • Section 23(2)
  • Section 34
  • Interest on solatium
  • Additional amount
  • Enhanced compensation
  • Reference Court
  • Civil Revision
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Case Details

2012 LawText (BOM) (04) 1

Civil Revision Application No.84 of 2012 with connected matters

0000-00-00

Venkat s/o. Baburao Karle, Janardhan s/o. Shankar Murke, Dhondiba s/o. Santuba Kamble, Shriram s/o.Bhagurao Kamble, Namdeo s/o. Laxman Tikte, Prahlad s/o.Nivrutti Hemnar, Punda s/o. Shankar Murke, Pandurang s/o. Ramchandra Hemnar, Laxman s/o. Ramchandra Hemnar, Narayan s/o.Ramchandra Hemnar, Shahaji s/o. Sidram Patil, Kishan s/o. Vitthalrao Patil

The State of Maharashtra, The Special Land Acquisition Officer, Swarna Project, Latur, The Executive Engineer, Minor Irrigation Division, Latur

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Nature of Litigation

Civil Revision Applications challenging the order of the Reference Court denying interest on solatium and additional amount in land acquisition compensation.

Remedy Sought

The applicants sought setting aside of the impugned orders to the extent they denied interest on solatium and additional amount, and a direction to pay such interest.

Filing Reason

The Reference Court granted enhanced compensation but denied interest on solatium and additional amount, which the applicants contended was contrary to law.

Previous Decisions

The Reference Court enhanced the compensation but denied interest on solatium and additional amount.

Issues

Whether the applicants are entitled to interest on solatium and additional amount under Section 28 of the Land Acquisition Act, 1894? Whether the Reference Court erred in denying such interest?

Submissions/Arguments

The applicants argued that as per the Supreme Court's decision in Sunder v. Union of India, interest under Section 28 is payable on the entire enhanced compensation including solatium and additional amount. The respondents opposed the applications, but the judgment does not specify their arguments.

Ratio Decidendi

Interest under Section 28 of the Land Acquisition Act, 1894 is payable on the entire enhanced compensation, including solatium and additional amount, as held by the Supreme Court in Sunder v. Union of India.

Judgment Excerpts

The Reference Court granted enhanced compensation but denied interest on solatium and additional amount. Following the decision in Sunder v. Union of India, interest under Section 28 is payable on the entire enhanced compensation including solatium and additional amount.

Procedural History

The Special Land Acquisition Officer awarded compensation; applicants sought enhancement before the Reference Court; Reference Court enhanced compensation but denied interest on solatium and additional amount; applicants filed Civil Revision Applications before the High Court.

Acts & Sections

  • Land Acquisition Act, 1894: Section 28, Section 23(1A), Section 23(2), Section 34
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High Court Bombay High Court Allows Land Acquisition Compensation Revision Applications for Enhanced Compensation — Interest Under Section 28 of Land Acquisition Act, 1894 Held Payable on Solatium and Additional Amount.
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